ADAMYA TECHNOLOGIES LTD

Executive Summary

ADAMYA TECHNOLOGIES LTD is currently experiencing liquidity strain, evidenced by a steep decline in cash reserves and minimal working capital, reflecting a fragile financial condition. The company remains solvent but requires urgent focus on cash flow improvement and operational activity to strengthen its financial health and support sustainable growth.

ADAMYA TECHNOLOGIES LTD - Analysis Report

Company Number: 13271712

Analysis Date: 2025-07-29 18:18 UTC

Financial Health Assessment of ADAMYA TECHNOLOGIES LTD (as of 31 March 2024)

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1. Financial Health Score: D

Explanation:
ADAMYA TECHNOLOGIES LTD shows symptoms of financial distress primarily characterized by a significant depletion of cash reserves and negligible current assets, indicating strained liquidity. While the company maintains a positive net asset position, the rapid decline in cash and absence of working capital buffer suggest limited ability to meet short-term obligations comfortably. Overall, the financial "vital signs" point to a fragile state requiring prompt attention.

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2. Key Vital Signs

Metric	2024 (Latest)	2023 (Prior Year)	Interpretation
Cash at Bank	£357	£3,567	Sharp cash decline (~90%) — a critical symptom of liquidity stress.
Current Assets	£358	£3,567	Current assets decreased significantly, indicating reduced liquid resources.
Current Liabilities	£0	£2,959	No current liabilities reported in 2024; prior year had liabilities. This may indicate payment of debts or timing differences.
Net Current Assets	£358	£608	Working capital is positive but minimal; insufficient buffer for unexpected expenses.
Net Assets (Equity)	£358	£608	Declining net assets reflect erosion of retained earnings or reserves.
Share Capital	£1	£1	Minimal share capital, typical for small private companies.
Employees	0	0	No employees, possibly founder-operated or dormant operationally.

Interpretation of Vital Signs:

• The "healthy cash flow" heartbeat of the company has weakened alarmingly, as shown by the depletion of cash reserves from £3,567 to £357 in one year.
• Absence of current liabilities in the latest year could be a double-edged sword: either liabilities have been cleared or are not being recognized timely, which warrants monitoring.
• The company is not generating or retaining significant profits (loss of £250 in equity), indicating operational challenges or low/no trading activity.
• No employees suggest the company may be in a developmental or inactive phase, which affects revenue generation capacity.

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3. Diagnosis

ADAMYA TECHNOLOGIES LTD is showing signs of financial frailty. The significant decline in cash without corresponding liabilities suggests limited operational cash inflow or reliance on owner funding. The positive but small net assets and working capital levels indicate that the company currently is not insolvent but operates with a very thin financial cushion—akin to a patient with a weak pulse but stable vital signs.

The company’s small size, lack of employees, and minimal share capital fit with an early-stage or holding entity, possibly not yet fully commercially active. The absence of turnover data and zero employees limit insight into operational performance, but the financial trajectory hints at constrained liquidity and growth challenges.

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4. Recommendations

• Boost Liquidity: Immediate focus on improving cash reserves through either capital injection from shareholders or generating sales revenue. Healthy cash flow is the foundation of financial wellness.
• Monitor Cash Burn: Track monthly cash flows closely to identify and control outgoing expenses, avoiding unnecessary cash depletion.
• Operational Review: Evaluate the business model, client acquisition plans, and revenue streams to stimulate turnover and profitability. Without operational activity ("symptoms" of no employees and low assets turnover), financial health cannot improve sustainably.
• Cost Management: Minimise fixed and variable costs to conserve cash while building the business. A lean cost structure is critical at this stage.
• Seek External Advice: Consider financial planning support or mentoring to develop a robust business and cash flow plan.
• Compliance and Reporting: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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